Reservoir Group has just completed its fifth acquisition. The Scottish group, which aims to become a global market leader in integrated downhole drilling products and services to the oil and gas industry, has snapped up an Australian business which designs and manufactures proprietary downhole drilling tools in a multi-million pound deal.
Founded in 2002, Extreme Machining has an extensive oilfield track record, and utilises state-of-the-art CNC machinery to design and manufacture the tools from its large plant in South Australia. The company, which turns over £4 million and employs 25 staff, provides both the international and Australian markets with proprietary drilling equipment as well as assisting its local clients with machine shops located in Adelaide. A new manufacturing plant is also about to open in the central pacific region.
Pascal Bartette, CEO of Reservoir Group said, “This acquisition takes us another step closer to reaching our ambitious five year target. It represents the introduction to Reservoir Group of a range of recognized products whose international distribution can be significantly enhanced by the global infrastructure of the group."
In line with Reservoir Group’s business model, the managing director of Extreme Machining, Mat Kennedy, will continue to manage the business and drive international growth.
Commenting on this transaction he said, “ Reservoir Group offers the platform we need to distribute our products worldwide. More importantly we will now have the capacity to design and market new downhole tools. These, together with our existing products will be marketed internationally through a newly created entity called X Drilling Tools."
Peter Stuart, Reservoir Group Chairman added, “The group is continuing to meet its targets and already seeing real growth from the synergies starting to emerge between the acquired businesses.”
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